BUSINESS POLICY AND STRATEGY
Conference Paper Abstracts代寫留學(xué)生dissertation
THE CONTRIBUTION OF ALLIANCE NETWORKS TO FIRM
PERFORMANCE: THE CASE OF THE U.S. SOFTWARE
INDUSTRY
Lavie, Dovev; U. of Texas, Austin;
This study seeks to extend the alliance literature which offered only limited evidence on the contribution of
alliance networks to the financial performance of interconnected firms. It addresses the fundamental
question of whether alliance networks matter by examining the role of the network configuration, which
encompasses the composition of alliance partners, their attributes, their bilateral relationships with the
interconnected firm as well as their multilateral relationships. The study distinguishes aspects of network
configuration that contribute to value creation from aspects affecting value appropriation. Hypotheses on
the contribution of alliance networks to firm performance are developed and then tested with panel data of
367 interconnected software firms that engaged in more than 20,000 alliances during the years 1990-
2001. The findings reveal that the contribution of alliance networks is multifaceted but fairly modest in
magnitude, with network size and strategic status producing only limited effects on performance. The
capabilities and reputation of partners in the network enhance firm performance, but the relative
bargaining power of partners detracts from this contribution. The findings also suggest that firms can
enhance their performance by developing balanced networks that combine technology and marketing
alliances and by encouraging competition among partners.
Keywords: alliance network, network configuration, firm performance
THE MINIMUM ASSUMED INCENTIVE EFFECT OF EXECUTIVE
SHARE OPTIONS
In granting executive share options (ESOs), companies hand over financial assets to the executive at an
opportunity cost that generally outweighs the value placed on those assets by the executive on the
receiving end. This outcome can be explained by risk aversion on the part of the executives. For such
transactions to make commercial sense, the difference in valuation must be at least made up by the
impact of the incentive effects induced by compensating executives in this particular manner. This paper
extends such a line of analysis to examine the executive抯 reward-risk trade-off, in addition to the
certainty-equivalent pay-performance sensitivity, and uses a UK data set to provide some estimates of
the size of these effects.
Keywords: CEO, Pay, Options
Business Policy and Strategy Paper Abstracts -- 1
RENTS AND THE LIFECYCLE OF FIRMS
Boddewyn, Jean; Baruch College; ABSTRACT: Strategy research emphasizes how firms outperform their commercial competitors. This
perspective leaves out companies that: (1) hardly engage in productive activities yet make their launchers#p#分頁標題#e#
rich (e.g., various dot.coms); (2) remain profitless for long yet are the darlings of the stock market (e.g.,
Amazon); (3) die young but still generates rents for some of their stakeholders (e.g., Webvan), and (4)
remain the targets of rent re-appropriations after their deaths (e.g., Combustion Engineering). These
anomalies are related to the existence, persistence, death and afterlife of firms, during which a variety of
rents are created, captured, preserved and re-appropriated. This paper: (1) analyzes what kinds of rents,
key actors, relative advantages, winners and losers are associated with these four lifecycle stages; (2)
draws various propositions and conclusions (e.g., the persistence of a firm is neither a necessary nor a
sufficient condition for the creation and capture of financial rents), and (3) offers research suggestions
after considering the implications of this analysis for firm and strategy theories. Keywords: Corporate core
competences; competitive dynamics; dynamic capabilities.
Keywords: Corporate core competences, dynamic capabilities, competitive dynamics
ENVIRONMENTAL UNCERTAINTY AND THE REAL OPTIONS
VALUE OF KOREAN FIRMS' INTERNATIONAL INVESTMENTS
International investments provide firms with important real options that allow them to gain strategic
flexibility during periods of uncertainty. In general, the greater the uncertainty faced by the firm, the
greater will be the value of the real options embedded in its international investments. To gain insight into
this relationship, we considered four different combinations of environmental uncertainty and currency
changes. We examined the relationship between the differing types of environmental uncertainty and real
options value of international investments using a database of Korean firms over a six-year period. We
found evidence that higher uncertainty, whether accompanied by currency appreciation or depreciation,
results in greater real options value of international investments for these firms. However, when
uncertainty was low, currency effects were more likely to appear. We also found that firms that are part of
organizational networks such as chaebols do not seem to benefit from international investments as real
options under uncertainty. These results suggest that the role of uncertainty and organizational context
are critical for understanding the real options effects of international firms.
Keywords: uncertainty, crisis, real options
Business Policy and Strategy Paper Abstracts -- 2
THE KNOWLEDGE-BASED VIEW AND THE INDIVIDUAL:
PHILOSOPHICAL CONSIDERATIONS ON THE LOCUS OF
KNOWLEDGEWe examine a fundamental question in the knowledge-based view, that is, where does knowledge
reside? We identify and contrast an individual and collective ideal type. In order to explicate implicit
assumptions we draw from the philosophy of science and social theory. We analyze several key issues#p#分頁標題#e#
for these ideal types such as part-whole relations, levels assumptions, and causation. Overall, while
knowledge-based arguments have largely been built on a Durkheimian collectivist tradition, we argue that
the individual needs to be brought back in as the antecedent to collective knowledge outcomes.
Keywords: knowledge-based view, strategy, methodological individualism
CORPORATE GOVERNANCE AND FINANCIAL CONSTRAINTS
ON STRATEGIC TURNAROUNDS
The paper develops a theoretical model of strategic corporate turnaround integrating governance and
associated financial arrangements. Inclusion of the latter elements reinforces earlier models developed by
turnaround research, which place retrenchment at the centre of the turnaround process. The model
presented here suggests that in certain conditions retrenchment may be prevented by hard financial
constraints. Their operation is such that a constrained but economically rational response to crisis at the
level of the individual firm produces highly sub-optimal consequences at the level of the industry.
Although such an outcome may not be common, its possibility, which is illustrated by a supporting
empirical case, suggests that it is important for theories of strategic turnaround to accommodate the
financial constraint perspective implied by the model. The empirical case also shows that such financial
constraints become less serious to the extent that there is a functioning market for corporate control.
Building on governance life-cycle research and turnaround literature, the paper also outlines the general
case necessary and sufficient conditions for successful turnarounds.
Keywords: Governance, Turnaround, Lifecycle
HOW LEGACY FIRMS CAN INTRODUCE RADICAL AND
DISRUPTIVE INNOVATIONS
Govindarajan, Vijay; Amos Tuck School of Business at Dartmouth College;
This paper addresses the issue of how legacy firms can introduce both radical and disruptive innovations,
where radicalness is a technology-based dimension of innovation, and disruptiveness is a market-based
dimension. Based on data from 138 SBUs in 23 global Fortune 500 firms, this paper makes the following
contributions. First, we provide a theoretical and an empirical analysis of the differential impact of four
Business Policy and Strategy Paper Abstracts -- 3
SBU-level abilities (mainstream customer orientation, emerging customer segment orientation, willingness
to cannibalize, and technological opportunism) on the radicalness and disruptiveness dimensions of
innovations, thus linking the research streams of customer orientation and radical innovations with that of
disruptive innovations. Second, we distinguish the combinations of SBU-level abilities that are required to
introduce disruptive and radical innovations. Third, we identify the key role of an SBU's emerging
customer segment orientation in developing disruptive innovations. In this regard, we provide a scale to#p#分頁標題#e#
measure such an orientation and establish that it is a distinct construct from the other three SBU-level
abilities. Finally, we examine the antecedents of an SBU抯 emerging customer segment orientation, i.e.,
identify the organizational factors such as incentives, adhocracy culture, and structure that promote such
an orientation.
Keywords: Radical Innovations, Disruptive Innovations, SBU抯 mainstream customer orientation
NETWORK DYNAMICS AND FIRM扴 FLEXIBILITY IN AN
EMERGING INDUSTRY
More and more corporations respond to competitive challenges by forming alliances with other firms and
becoming embedded in an industrial network. While, most of the management literature emphasizes the
multiple benefits of such networks, this paper addresses the question how networks affect a firm抯
flexibility to act in the future. We argue that firms loose their flexibility the more they become embedded in
a network and that these side effects of networks need to be considered when deciding on forming
relations with other firms. We apply a longitudinal analysis considering differences between firms as well
as changes over time to investigate the network dynamics in the wireless telecommunication industry
between 1996 and 2000. Our results reveal, that firms are indeed less flexible after recent engagements
in multiple alliances with the same partners. Furthermore we show that firms who are and who become
more constrained in their network position loose their flexibility with respect to re-designing their networks.
The flexibility of a firm is, however, not affected or even increased, as firms maintain many weak ties and
ties to firms with no other ties in the wireless telecommunication sector.
Keywords: Dynamics, Networks, Alliances
ANTECEDENTS OF CONSISTENCY BETWEEN RESOURCE
ALLOCATION DECISIONS AND CORPORATE STRATEGY
This paper investigates the antecedents of consistency between corporate strategy concept and
individual resource allocation decisions in the Swiss pharmaceutical companies Ciba and Sandoz from
1989 through their merger to form Novartis in 1996. We present a model from which we derive
hypotheses regarding the influence of organizational and decision-specific factors on consistency. We
test these hypotheses using data on 493 resource allocation decisions, applying maximum likelihood
ordered logit estimation. Results indicate that factors specific to individual resource allocation decisions
are far more important for their consistency with the prevailing corporate strategy concept than
organizational factors. In particular, the longer the time lag between the announcement of a corporate
strategy concept and individual resource allocation decisions, the lower the likelihood of high consistency
Business Policy and Strategy Paper Abstracts -- 4
levels. As to the role of organizational factors, lower decision-making levels tend to be associated with#p#分頁標題#e#
higher consistency levels.
Keywords: Strategy, Novartis, Consistency
HOW BOARDS INFLUENCE CEO
DISMISSAL:UNDERSTANDING BOARD PERCEPTIONS,
ATTRIBUTIONS, AND EFFICACY
Haleblian, Jerayr; U. of California, The extant literature that examines the role of boards in the CEO dismissal process has almost
exclusively focused on the impact of board power and has only rarely considered the influence of board
cognitions. However, board power only affects dismissal after the board identifies the necessity for CEO
change. Hence, we draw on social cognitive theory to develop a framework with which to elaborate on the
cognitions that impact the decision to dismiss a CEO. We argue that boards may vary in their cognitions,
and we identify the causal effects of three sets of board cognitions that affect CEO dismissal: (1)
perceptions of poor performance, (2) attributions of poor performance, and (3) efficacy assessments of
CEO ability. The resulting model illuminates the domain of board cognitions and facilitates future
empirical research to expand and refine understanding of CEO dismissal decisions.
Keywords: Board Cognitions, CEO dismissal
THE INFLUENCE OF TOP MANAGERIAL RISK PROPENSITY
AND GOAL SETTING ON STRATEGIC CHANGE MAGNITUDE
Keywords: Hubris, Executives, Self-evaluations
PARTNERING WITH THE COMPETITION? FREQUENT FLYER
PARTNERSHIPS BETWEEN COMPETING DOMESTIC
In 1998, the major U.S. carriers formed three pair-wise frequent flyer program (FFP) partnerships. These
partnerships allowed consumers to earn and redeem one airline抯 FFP points when traveling flights
operated by its partner. While partnerships between domestic airlines and international carriers are
common, partnerships between competing domestic airlines are a new and potentially puzzling strategy.
On one hand, the formation of a domestic partnership can expand consumers?earning and redemption
opportunities in an airline抯 FFP by including flights operated by the partner. On the other hand, by
allowing each airline抯 FFP points to be earned on its partner抯 flights, a partnership may increase the
degree of substitutability between the partners?flights. This paper investigates the extent the which the
domestic partnerships formed in 1998 did, in fact, expand the airlines?FFPs and develops an empirical
framework to estimate the impact of the partnerships on each airline抯 demand on domestic routes. A
differences-in-differences approach is used which exploits the fact that the value of a domestic
partnership will be greater at airports at which the scale and scope of the partner抯 operations are larger.
Two findings stand out. First, the domestic partnerships do appear to have generated an expansion of
earning and redemption opportunities, in particular for consumers at certain airports. Second, once the#p#分頁標題#e#
partnerships are in place, increases in the size of an airline抯 partner抯 operations at an airport are
associated with increases in the airline抯 market share on routes that depart from that airport. No similar
effect is detected in the pre-partnership period.
Keywords: partnerships, airlines, frequent flyer programs
CAN LIVING TOGETHER BEFORE MARRIAGE HELP
ACQUIRERS DEFEAT THE WINNER'S CURSE?
Porrini, Patrizia; Long Island U.;Between 1990 and 2000, organizations have been combining resources through acquisitions and
alliances in record numbers. This study investigates whether a previous alliance between an acquirer and
a target correlates with acquisition premium and finds that a previous alliance experience between an
acquirer and a target correlates negatively with acquisition premium. The findings imply that previous
alliance experience between acquirers and targets is a beneficial form of due diligence and can help
mitigate acquirers?overpayment for targets.
Keywords: alliances, acquisitions, premium
Business Policy and Strategy Paper Abstracts -- 9
DO ALLIANCES DECREASE FIRMS' RISK?
This paper examines whether alliances decrease firms?systematic risk. Alliances are popular modes by
which firms share resources and capabilities. Alliances can reduce firms?risk by decreasing firms?
susceptibility to their environmental uncertainty, allowing for risk sharing, and allowing for reversibility of
resource-commitments. Thus alliances can limit firms?exposure to risk as alliances help firms avoid being
locked out of new technologies, and help firms defend and extend their strategic positions. The study
examines 407 alliances where all partners are public US-based firms and finds that alliances decrease
firms?systematic risk. Specifically, systematic risk decreases by an average of 17% and 25% for one-year
and two-year windows of Beta surrounding alliance announcements, respectively. Furthermore, different
alliance types have different risk-reduction benefits. These findings have important implications for theory
and practice.
Keywords: alliance, risk
COMPETITION AND THE DEFENSE INDUSTRIAL BASE: A
CASE STUDY OF LOCKHEED-MARTIN AND THE F/A-22
RAPTOR
Consolidation of the defense industrial base has led to concerns about whether enough competition
exists between remaining firms to maintain needed cost reduction and innovation. We examine
competition in the U.S. defense industrial base by performing an in-depth case study of Lockheed-Martin
and the F/A-22 program that considers multiple tiers of the industrial base. We find that defense firm
specialization has led to outsourcing practices and arguably a more robust U.S. defense industrial base.
Implications for government policy are identified.
Keywords: Industrial Base, transaction cost economics, Outsourcing#p#分頁標題#e#
STRATEGIC SOCIAL THEATRE: MORE THAN 'JUST DOING IT'
IN THE EMERGENT IMPLEMENTATION PROCESS
Strategy implementation theory is underdefined and mainly advances the notion of 搄ust doing it.?Using
social drama theory, we explore strategy implementation as a form of theatre and provide a new threeway
classification of existing schools of thought. Our second contribution is to provide a more
sophisticated definition of strategy implementation using key dramaturgy concepts from Turner抯 social
drama work. We also discuss strategy implementation with regard to managing corporate experience that
is fragmented, processual, liminal and indeterminate.
Keywords: strategy making, implementation, theatre
Business Policy and Strategy Paper Abstracts -- 10
TOWARD A (PRAGMATIC) SCIENCE OF STRATEGIC
INTERVENTION: THE CASE OF SCENAROIO PLANNING
Despite the widespread popularity of scenario planning techniques as a basis for intervening in the
strategic management process, there have been surprisingly few attempts to rigorously evaluate the
extent to which, under what circumstances and for what reasons, these procedures yield useful outcomes
or otherwise. Rather, the extant literature is replete with case examples of apparent success stories.
While such accounts are highly appealing to the advocates of scenario planning procedures, they are
extremely weak from a scientific standpoint, conveying nothing of the limitations of these approaches, nor
indeed the underlying mechanisms through which they exert their effects. One way of ascertaining the
boundary conditions of these techniques, and illuminating the underlying mechanisms at work, is through
the careful documentation and analysis of failure cases. Taking one such case as a point of departure, a
theoretical framework is developed as a basis for guiding future investigations. The framework maps out
systematically a range of multilevel factors (incorporating the inner and outer contexts of the organization,
individual differences among members of the scenario team, including consultants/facilitators involved in
the intervention process) that warrant detailed further study. Finally, a number of methodological
suggestions are outlined entailing more in-depth, qualitative analyses of critical incidents in field settings,
in conjunction with structural equation modelling and the use of experimental techniques in the field and
laboratory.
Keywords: strategic intervention, strategy process, scenario planning
SOCIAL CAPITAL,COMPETITIVE STRATEGY AND
PERFORMANCE IN A SUB-SAHARAN AFRICAN EMERGING
ECONOMY.
Acquaah, Moses; U. of North Carolina, The paper examines the impact of social capital derived from managerial social networking relationships
and personal ties with external entities on organizational performance using survey data from Ghana. I#p#分頁標題#e#
also examine how the relationship between social capital and organizational performance is contingent on
an organization抯 competitive strategic orientation. The findings suggest that social capital developed
from managerial networking and social relationships with the top management of other firms, government
political leadership, executives in investment, regulatory and supporting institutions, and community
leadership enhance organizational performance. The impact of social capital on organizational
performance differs between firms that pursue the different competitive strategies (low-cost,
differentiation, and integrated low-cost and differentiation) and those who do not.
Keywords: Competitive strategy, Social capital, Firm performance
Business Policy and Strategy Paper Abstracts -- 11
THE PRICING AND PROFITABILITY OF MODULAR CLUSTERS
The last twenty years have witnessed the rise of disaggregated "clusters" or "networks" of firms. In these
clusters the activities of R&D, product design, production, logistics and selling may be split up among
hundreds or even thousands of firms. Different firms will design and produce the different modules of a
complex artifact (like the processor, peripherals, and software of a computer system), and different firms
will specialize in different stages of a complex production process. This paper considers the pricing
behavior and profitabililty of such clusters. In particular, we investigate a possibility hinted at in prior work:
that pressures to raise prices across complementary-goods markets can offset pressures to reduce prices
within oligopolistic differentiated-goods markets. In this paper, we isolate the offsetting price effects and
show how they might operate in large as well as small clusters. We argue that it is theoretically possible
for a "modular cluster" of firms to mimic the pricing behavior and profitability of "one big firm."
Keywords: modularity, vertical integration, cluster
ORDINAL STRATEGIC RISK AND RETURN: A FRESH LOOK
AT BOWMAN'S PARADOX
Maurer, Frantz; U. Montesquieu-Bordeaux; This paper examines the risk-return relationship from a sample of 34 firms listed on the CAC 40 stock
market index over the period 1993-2002. The test of risk-return association uses two distinct risk
measures: the strategic risk of the firm, based on the ordinal approach proposed by Collins and Ruefli
(1992), and the conventional variance of returns. The total sample is then divided into two sub-samples
by using the median performance criterion. The aim is to evaluate both the reality of Bowman's paradox
and validity of arguments derived from prospect theory allowing to explain it. The results indicate that the
nature of risk-return relationship is heavily conditioned by the risk measure used. They also invite to#p#分頁標題#e#
reconsider the traditional approach of Bowman's paradox.
Keywords: Strategic risk, Bowman's paradox, Prospect theory
VALUE CREATION IN STRATEGIC ALLIANCES: A METAANALYSIS
Firms have been increasingly active in the formation of strategic alliances. As a result, there has been a
significant growth in the number of studies examining the effects of strategic alliances on firm
performance. Although this area of research comprises over 90 studies, conducted over the last twenty
years, and continues to attract research attention, there is little empirical consensus about the direction
and magnitude of the performance effects of strategic alliances. In this paper we use meta-analysis to
provide quantitative synthesis of the empirical literature on the impact of strategic alliances on firm value.
Our findings indicate that, on average, strategic alliances create shareholder value. Furthermore, our
Business Policy and Strategy Paper Abstracts -- 12
results suggest that the stock of intangible assets of the parent firms, the amount of financial resources
invested in the strategic alliance, the degree of relatedness between the parent firms and the strategic
alliance, the previous collaborative experience between the alliance partners, and the extent to which the
strategic alliance is associated with international diversification, systematically influence value creation in
strategic alliances. We discuss the implications of these findings and offer directions for future research.
Keywords: alliances, meta-analysis, performance
FIRM CONTEXT AND THE RELATIONSHIP BETWEEN
DIRECTOR RESOURCE DEPENDENCE ROLES AND IPO
We examined the effects of two contextual factors, firm age and firm size, on the relationship between
board of director resource dependence roles and IPO performance. The findings suggest that firm age
and firm size moderate the relationship between board members?various resource dependence roles and
IPO performance. Our results contribute to resource dependency theory as well as to our knowledge
about corporate governance and the use of IPOs to raise financial capital.
Keywords: governance, IPO, resource dependence
USING HOSTAGES TO SUPPORT EXCHANGE: DEPENDENCE
We develop a framework to assess the effectiveness of different hostage-based arrangements used to
govern external supply relationships in Japan and elsewhere. We argue that the effectiveness of
arrangements such as partial equity stakes and other forms of dependence balancing depends on the
value, durability and visibility of the explicit or implicit hostages posted by transacting parties. Although a
partial equity stake is a robust form of hostage in Japan, it is also a costly governance tool in this context;
other forms of dependence balancing may be cost-effective when contracting hazards are lower. Our#p#分頁標題#e#
empirical analysis provides support for these arguments. Japanese automobile assemblers hold equity in
their suppliers when contracting hazards are high; in supply relationships that do not justify the costs of
an equity tie we find evidence of volume-based dependence balancing
Keywords: Transaction cost economics, Japan, Equity stakes
Business Policy and Strategy Paper Abstracts -- 13
FROM ALLIANCE NETWORKS TO MULTILATERAL
ALLIANCES: DATA FROM THE GLOBAL AIRLINE INDUSTRY
Lazzarini, Sergio Giovanetti; Ibmec Business School; This study examines conditions in which alliance networks (informal webs of bilateral entanglements
between firms) may or may not evolve into multilateral alliances (broad, formal multiple-firm
arrangements). I offer a theory to explain the formation of multilateral alliances based on both the
resource profile and the structure of existing interfirm networks, and provide an initial test of that theory in
the context of the global airline industry. I find that multilateral alliances are more likely to emerge when
alliance networks exhibit high resource diversity and network structure characterized by moderate density
and high centralization. Apparently, while highly sparse networks reduce actors?awareness of their
potential joint collaboration, highly dense or embedded networks substitute for the need of formal controls
accompanying multilateral agreements. The effect of centralization suggests that the formation of
multilateral alliances tends to be triggered by leading actors directly connected to other network
members.
Keywords: alliance networks, multilateral alliances, constellations
MIDDLE MANAGERS' STRATEGIC INFLUENCE:
INVESTIGATING NETWORK CENTRALITY AND
PERCEPTUAL DEVIANCE
We report the results of a study that investigates the relationship between middle managers? divergent
strategic influence activity, network centrality, and perceptual deviance. Using a social network approach
in a medium-sized urban hospital, we found that boundary-spanning managers exhibit higher levels of
divergent strategic influence and network centrality than non-boundary spanning managers. However, the
study did not reveal an association between the extent to which the managers? perceptions of the
strategic situation deviated from that of top management and their degree of divergent strategic influence.
In an effort to advance current theory, we discussed our findings with top managers from four different
organizations. These new insights illustrate the complexities linking middle managers? perceptual
deviance and their level of divergent strategic influence activity.
Keywords: middle managers, boundary spanners, social networks
FROM METAPHOR TO PRACTICE IN THE CRAFTING OF
STRATEGY
This paper explores how the link between the hand and the mind might be exploited in the making of#p#分頁標題#e#
strategy. Using Mintzberg抯 image of a potter undergoing iterative and recursive learning and knowledgebuilding
processes as a point of departure, we develop a 3-level theoretical schema, progressing from the
physiological, to the psychological, to the social, to trace the consequences of the hand-mind link. To
illustrate our theoretical schema, we present an illustration case of managers from a large
Business Policy and Strategy Paper Abstracts -- 14
telecommunications firm experimenting with a process for strategy-making in which they actively use their
hands to construct representations of their organization and its environment. We conclude that new and
potent forms of strategy-making might be attained if the fundamental human experience of using ones
hands is put in the service of all kinds of organizational learning.
Keywords: strategy, crafting, hand-mind link
RATIONAL OR REASONABLE? STRATEGY AND THE
CONCEPT OF REASONABLE BEHAVIOUR
This paper examines the concept of reasonable behaviour, proposed by Pierre Bourdieu, in relation with
the practice perspective on strategy and population ecology. The theory of action which underpins this
concept rejects the duality between conscious and unconscious. It implies that our ability to reason is not
only limited by our bounded cognitive capabilities, as Herbert Simon has shown, but also as a result of
our practical adaptation to the social and historical conditions in which we operate. This theory is of
interest for population ecology and the practice perspective on strategy. For population ecology the
concept of strategic inertia can be extended to take into account the limited capabilities of agents to react
to changes in the environment. For the practice perspective on strategy it provides a framework to
understand the relationship between the conditions in which agents strategize and their strategizing
patterns.
Keywords: Strategy, Practice, Bourdieu
MULTINATIONAL FIRMS AND INTERNATIONAL
KNOWLEDGE DIFFUSION: EVIDENCE USING PATENT
CITATION DATA
To understand the role of MNCs in international knowledge diffusion, two questions need to be
considered: (1) How actively do overseas subsidiaries of an MNC exchange knowledge with other players
in the host country? (2) To what extent do these overseas MNC subsidiaries facilitate bi-directional
knowledge flows between the MNC home base and the host country? To address these issues, I analyze
citation patterns for over half a million patents from 4,400 firms and organizations across six countries
and all manufacturing sectors. I estimate the probability of individual knowledge flows using a weighted
maximum likelihood approach for choice-based samples. My overall results suggest that there are
significant bi-directional knowledge flows between MNCs and their host countries, but MNCs contribute#p#分頁標題#e#
less to host country knowledge than they gain from it. For knowledge flows within host countries: (1a)
Knowledge flows from domestic entities to MNC subsidiaries are as strong as those between domestic
entities; (1b) Knowledge flows from MNC subsidiaries to domestic entities are weaker on an average, with
the pattern differing across sectors and countries; (1c) MNC subsidiaries are particularly good at learning
from each other. For knowledge flows across borders: (2a) MNCs are as good at transferring knowledge
from their subsidiaries to the home base as from the home base to the subsidiaries; (2b) Greater MNC
subsidiary activity increases cross-border knowledge flows between host country domestic entities and
the MNC home base, but the MNC home base gains more from it than the host country domestic players
do.
Keywords: Knowledge spillovers, Multinationals, Foreign direct investment
Business Policy and Strategy Paper Abstracts -- 15
MULTIMARKET CONTACT, STRATEGIC ACTIONS AND FIRMLEVEL
PERFORMANCE
Previous studies on the relationship between multimarket contact (MMC) and firm-level performance
provide an incomplete picture of multipoint competition, because they exclude the role of strategic action.
We argue that both strategic actions and multimarket contact are important antecedents of firm
performance. Multipoint competition commonly evolves from a process of Red Queen competition, in
which firms undercut each other and spend resources to maintain their performance. Our analysis of the
Canadian general insurance industry from 1993 to 1998 shows that multipoint rival抯 MMC with a focal
firm is positively associated with both the focal firm抯 total number of strategic actions and the focal firm抯
performance. Moreover, the rival firm抯 number of strategic actions is positively associated with the focal
firm抯 total number of strategic actions and negatively associated with the focal firm抯 performance.
Keywords: Multimarket contact, strategic actions, firm-level performance
Japanese firms have long-term horizons and aggressively invest in R&D, but does R&D investment result
in improved performance? We find a negative association between R&D investment and performance,
indicating overinvestment in R&D presumably from a failure of governance mechanisms to resolve
agency problems. R&D investments appear especially problematic for underperforming firms, suggesting
that underperformers make overly risky R&D investments that hurt performance. Interestingly, R&D
investment by above average performers is positively associated with performance, suggesting that firms
with good governance appropriately utilize slack resources to generate high returns from R&D.
Keywords: R&D, corporate governance, Japan
SUSTAINABLE COMPETITIVE ADVANTAGE FROM#p#分頁標題#e#
firms (PBSFs) may develop from both coproduction
leading to client satisfaction, as suggested by Bettencourt, Ostrom, Brown & Roundtree
(2002), and from an improved knowledge base and reputation. The latter is addressed in this paper. We
Business Policy and Strategy Paper Abstracts -- 16
point out that superior client and project selection has two key effects on competitive advantage for
PBSFs: The first is immediate and short term, through efficiency and effectiveness in co-production,
leading to client satisfaction, higher probability of being retained for future projects, positive word-ofmouth,
and thereby improved reputation. The second, more indirect effect, relates to a PBSF抯 knowledge
development. In this study, enablers of individual knowledge development were examined in a sample of
218 respondents from 20 PBSFs in 5 different industries. The respondents were asked about key
characteristics of client projects resulting in high versus low levels of perceived knowledge development.
Project characteristics that include individual knowledge development are: (i) the nature of the tasks to be
solved (innovative), (ii) the project size, both in terms of length and project members, and (iii) time
pressure. Client characteristics facilitating individual knowledge development are: (i) interaction with the
client in terms of interaction frequency, (ii) ability to communicate with the client and client involvement,
and (iii) knowledgeable clients. Finally, the composition of the project group, both in terms of
heterogeneously composed groups and groups characterized by having a majority of the project
members with specialist competence, enhance individual knowledge development.
Keywords: Knowledge Development, Professional Business Service Firms, Competitive
Advantage
This paper poses several questions about the relationship between the different experiences of top
management team members and firm performance: When and why does the experience of top
management teams matter? What are the performance outcomes of different types of team experiences?
And, How do changes to the top team affect performance? Using a sample of 283 firms with
interdependent top teams and 1,965 executives, the study uses the resource-based view and upper
echelon theories to examine three different types of experience梖irm, team and functional. In answering
these questions, the study concludes that all three types of experiences matter, but the effects of firm and
team experience are contingent upon the environment. In more stable environments, the resource-based
view theory that more and varied experience creates causal ambiguity and path dependency that is
difficult to imitate prevailed. This result was confirmed by the succession hypotheses in stable firms which
demonstrated a decrease in firm performance when there were decreases in firm or team experience. In#p#分頁標題#e#
firms operating under more industry volatility, the relationship was found to be curvilinear: more
experience helps the firm to a point, after which social psychological constraints prevent the top team
from operating efficiently, causing a decline in organizational outcomes.
Keywords: Top Management Teams, Resource Based View, TMT Experience
REPUTATION, COMMITMENT AND PERFORMANCE OF FILM
PROJECTS IN THE USA AND CANADA (1988-1997)
This contribution introduces a framework derived from the resource-based view to investigate the impact
of reputation resources and commitment on commercial and artistic performance of film projects.
Structural models are tested on 2080 films first released in American theatres from 1988 to 1997. Results
demonstrate the mediating role of financial commitment in assessing film performance and in
transforming static resources into dynamic assets. They unearth a novel hierarchy and dynamics of
Business Policy and Strategy Paper Abstracts -- 17
primary and secondary strategic assets and of key players in a film project: Actors first, then directors and
producers in a coordinating role. Third and last, they confirm industrial rather than artistic dominant traits
of American cinema.
Keywords: Resource based view, American Cinema, Irreversible Commitment
Mangematin, We analyse the changing contribution of networks to the innovative performance of 30 pharmaceutical
companies from 1989 to 1997. Count data models show that collaborations with universities and
biotechnology companies are important determinants of the firms' innovative performance, but their
respective contributions diverge when industry matures. Larger firms enjoy a significant size advantage
and in-house research activities are highly significant. Returns to scale in research are decreasing over
time while the size advantage is increasing. The changing contribution of networks to knowledge
production suggests that these are phase-specific, which has substantial managerial and policy
implications.
Keywords: industry life cycle, network, innovation
THE SIGNIFICANCE OF NETWORK RESOURCES IN THE RACE
TO ENTER EMERGING PRODUCT MARKETS
Lee, Gwendolyn Kuo-fang; INSEAD Strategy & Management Department;
The objective of this paper is to examine how the three dimensions of a firm抯 憂etwork resources?(Gulati,
1999) affect the speed of entry into an emerging product market. The three dimensions of a firm抯
network resources considered are information volume, richness, and diversity. The empirical analyses
involve unpacking the dynamic effects of a firm抯 pre-entry strategic alliances to understand the following
questions at the intersection of strategy and network research. (1) Do variations in each dimension of a
firm抯 network resources contribute to differences in speed of market entry? (2) If so, what are the#p#分頁標題#e#
limitations? The specific context for empirical testing is the convergence between telephony
communications and computer networking technologies, where I observe a multi-population panel of firms
deciding whether to enter the networking switches market over a thirteen-year period from 1989 to 2001.
The results show the benefits as well as the limitations of each of the three dimensions of a firm抯 network
resources. Each of the three dimensions of network resources is found to be an important source of
variation in a firm抯 speed of entry into an emerging product market when industry boundary blurs. These
findings have theoretical implications for the embeddedness perspective and the resource-based view of
the firm.
Keywords: Market Entry, Strategic Alliance, Network Resources
Business Policy and Strategy Paper Abstracts -- 18
AN EMOTION-BASED VIEW OF DYNAMIC CAPABILITY
This paper challenges the dominantly pessimistic view of emotion held by many strategy scholars and
elaborates on the various ways in which emotion can help organizations achieve renewal and growth. I
discuss how appropriate emotion management can increase the ability of organizations to realize
continuous or radical change to exploit the shifting conditions of their environments. This ability is rooted
in developing emotion-based dynamic capabilities that facilitate organizational innovation and change.
These emotion-based dynamic capabilities express or arouse distinct emotional states such as sympathy,
authenticity, hope, fun, and attachment to achieve specific organizational goals important to strategic
renewal, such as receptivity to change, the sharing of knowledge, collective action, creativity, and
employee retention.
Keywords: emotion, strategic change, dynamic capability
VERTICAL DE-INTEGRATION BASED ON PRODUCT
MODULARIZATION: AN ORGANIZATIONAL ECONOMICS
PERSPECTIVE
In this paper, we analyze recent business trends toward vertical de-integration. Utilizing transaction costs
theory and agency theory, we argue that the organizational economics principles that helped to explain
vertical integration in earlier time periods in economic business history are also the organizational
economics principles that help us to explain and predict vertical de-integration today. While the
organizational economics principles are durable, the foundational characteristics of transactions have
been transformed by the use of information systems and the standardization of interfaces.
Keywords: Modularity, Transaction costs, Vertical Integration
ACQUIRING INTANGIBLES THROUGH M&AS: EXPLORING
In this study, we examine whether the resources bought from public targets are different from those
bought from private targets, and the implications on acquirer returns. We argue that public targets
represent a stronger mechanism for buying intangible resources than private targets. However, we do not#p#分頁標題#e#
expect acquirers of public targets to outperform acquirers of private targets. Combining an event study
with a survey of post-acquisition resource transfer on a sample of 101 horizontal acquisitions, we find
support for our predictions. Overall, the results suggest that public and private targets are qualitatively
different in terms of the degree of asymmetric information, bidding process and post-acquisition process.
Keywords: Mergers and Acquisitions, Private targets, Intangible resources
Business Policy and Strategy Paper Abstracts -- 19
CONFIGURATIONAL TRANSITIONS UNDER DISCONTINUOUS
CHANGE: A LONGITUDINAL STUDY
been knowledge acquisition.
Previous studies have, however, only to a limited degree distinguished between types of knowledge
acquired in an alliance. In this paper we study three types of knowledge acquisition: First, new knowledge
that is created jointly by the two alliance partners, second explicit knowledge already developed by one
partner and transferred in the alliance, and third, tacit knowledge transfer, or knowledge that is accessed
as the partners observe practices and routines at the site of the alliance partner. We link these three
types of knowledge acquisition in alliances to structural characteristics of the alliance, and find that the
three modes are associated with different alliance characteristics. Joint knowledge creation is associated
with trust and high 搇ock-in? explicit knowledge transfer is linked to behavioral risk, trust and ownership,
whereas tacit transfer is connected to trust and size of the firm. All forms of knowledge acquisition are
stimulated by the strategic content of the alliance. This study shows that knowledge acquisition in
alliances should be separated into different dimensions and be treated differently, both by adacemics and
practioners.
Keywords: Alliances, Knowledge transfer, Risk and Control
UNFOLDING COMPETITIVE ACTION PATTERNS
contribution to
the field of strategy research, complimenting perspectives that were outward looking, emphasizing the
firm抯 position relative to its external environment. While there has been substantial consensus that
dynamic capabilities are important, there has been less certainty about how they are developed and the
extent to which they are imitable. This paper is meant to inform the discussion surrounding dynamic
capabilities by developing a specific example of how the capability to improve processes is developed at
Toyota, a firm that has displayed many of the external manifestations of competing through capabilities
(rates of improvement, market share and sales growth, market capitalization, etc.). In terms of how this
capability is developed, we conclude that Toyota employs a mechanism of 損racticing process
improvement?that provides many, tightly compressed opportunities to improve processes, with only#p#分頁標題#e#
incremental introductions of novelty and variation, substantial coaching, and much codification and
articulation of tacit experiences. In terms of the difficulty of developing this capability, we note that
practicing process improvement requires managers to assume roles as teachers and coaches not
normally associated with the managerial function. The changes in organizational behavior this might
require may make this particular capability harder to imitate than some authors might assume.
Keywords: problem solving, dynamic capabilities, process improvement capacity
Business Policy and Strategy Paper Abstracts -- 47
CORPORATE REPUTATION: DO BOARD CHARACTERISTICS
MATTER?
Drawing on theories in the areas of organization theory, strategic management and economics, this study
examines the relationships between the characteristics of the board of directors of a firm and corporate
reputation. Based on a sample of 341 firms, our finding indicates that a higher proportion of outside
directors on the board is associated with greater firm reputation. In addition, firms with larger boards seem
to score better on reputation. However, no relationship was observed between CEO duality and such
reputation. The implications of the findings from the perspective of theory and managerial practice are
discussed, along with possible directions for future research.
Keywords: corporate reputation, board characteristics, corporate governance
A MODEL OF CHIEF FINANCIAL OFFICER PROMOTION AND
EXIT
I suggest that top management team changes are linked to both technical-efficiency and social legitimacy
considerations of the organization. Further, I argue that as these two considerations are in conflict with
each other under certain conditions, organizations need to strategically balance the benefits possible
through them. I thus apply the emerging theoretical ideas of the strategic balance approach to the issue
of top management team changes and suggest its usefulness through two examples.
Keywords: Top Management Team, Strategic Balance, Legitimacy
REPLICATING SELF AND OTHERS:THE ROLE OF EXISTING
KNOWLEDGE IN THE CHOICE OF DIVERSIFICATION MODES
 opportunities for
themselves, provide more attractive employment opportunities for their people and generally create
strategically superior positions for themselves relative to competitors in the industry. This paper
challenges the view that positions of leadership arise more from good fortune rather than strategy. We
explore the relationship between technological leadership and the deliberate voluntary sharing of
technical information by firms during the emergent phases of an industry. The setting for the research is
the speech recognition industry. Data on speech recognition patents from 1970 to 2000, citations to those
patents, and speech recognition publications produced by firms, are used in the study. We find support#p#分頁標題#e#
for the assertion that the number of publications produced by a firm, is positively associated with that
firm抯 technological leadership. This supports the view that leadership positions can result from the
deliberate actions of the firm. The key contributions of this study are to highlight: that knowledge will at
times generate more value for the firm when shared as opposed to kept secret; the importance of the
community effect in emergent contexts; the possible need for public policy intervention to support the
publication process particularly in contexts striving for legitimacy; and the importance of further study of
the voluntary sharing of technical information by firms.
Keywords: Technological Leadership, Voice Recognition, R&D Spillovers
Business Policy and Strategy Paper Abstracts -- 77
TIME AND PLACE: THE MISSING DIMENSIONS IN VARIANCE
COMPONENTS OF PERFORMANCE STUDIES
used variance components techniques to
decompose firm performance into several effects that influence it, typically identifying firm effects, industry
effects and corporate effects as the key elements that drive firm performance. In this article we analyze a
sample of 462 Latin American firms using the variance components technique, showing that the variance
composition profile for this sample is quite different from the ones found in previous studies. In our
analysis two new effects(time and geographic location) appear as key elements to explain performance.
We also explore some consequences of these findings for strategy research.
Keywords: Business Strategy, Variance Components, Latin America
RECONCILING VALUE MAXIMIZATION AND STAKEHOLDER
THEORY: AN EMPIRICAL APPROACH
Jain, ViJain, Kamlesh; U.S. Department of The current debate in corporate governance is about the fundamental purpose of business, shareholder
value maximization versus meeting stakeholder claims. Efforts to reconcile the two perspectives have
essentially proved fruitless. Proponents of the value maximization principle say that a firm exists to
maximize shareholder value and that managers cannot logically be expected to serve many masters at
the same time as suggested by stakeholder theory. Proponents of stakeholder theory, on the other hand,
say that a firm exists to satisfy the claims of its all stakeholders. Both theories purport to provide guides to
managerial action. The Balanced Scorecard, used by many corporations for implementing stakeholder
theory, has been found to have many shortcomings including that it does not provide a means for making
tradeoffs among a firm's various stakeholders. Without the clarity provided by a single-valued objective
function, the Balanced Scorecard may lead to unfocused and purposeless managerial action, which can
actually harm a firm's interests. This paper proposes and illustrates a relatively new approach for#p#分頁標題#e#
performance measurement, the data envelopment analysis (DEA) approach, which empirically reconciles
value maximization and stakeholder perspectives. The DEA index is an elegant, theory-based, and
intuitively meaningful measure of firm performance based on its multiple inputs and multiple outputs and
the underlying relationships between the two. It provides a single-valued objective function that can be
utilized to maximize firm performance, while taking into account the interests of a firm's multiple
stakeholders, thus providing a means for making tradeoffs among the firm's multiple claimants.
Keywords: Corporate Governance, Shareholder Value Maximization, Stakeholder Theory
Business Policy and Strategy Paper Abstracts -- 78
SPEED, SEARCH, AND THE FAILURE OF SIMPLE
CONTINGENCY
It is widely accepted that an organization抯 internal design should be contingent on the nature of its
external environment. Yet attempts to construct simple contingency relationships ?i.e., one-to-one
mappings from environmental conditions to appropriate design elements ?have met with limited success.
We shed light on this lack of success by means of an agent-based simulation in which modeled firms of
different designs face various environmental conditions. We find robustly that turbulent environments call
for organizational features that generate high speed of improvement, and complex environments call for
features that engender diverse search. The precise design features that produce speedy improvement
and diverse search, however, vary dramatically from one decision-making archetype to another. A feature
that accelerates improvement in a decentralized firm, for instance, may slow it down in a hierarchical firm.
It is this subtlety that undermines simple contingency relationships. We argue that the intermediate
constructs speed of improvement and diversity of search clarify the mapping between environment and
appropriate design and may point the way to more nuanced contingency hypotheses.
Keywords: organizational design, turbulence, contingency theory
COMPLEXITY, NETWORKS AND KNOWLEDGE FLOW
Sorenson, Olav; U. of California, Los Rivkin, Jan W.; HarvaBecause knowledge plays an important role in wealth creation, economic actors may attempt to skew the
flow of knowledge in their favor. Managers of a firm may seek to spread knowledge widely within their
organization but prevent its diffusion to rivals, for instance. We ask, when will knowledge developed in
one area of dense social connections ?such as a firm, a geographic locale, or a technological community
杁iffuse to the edge of that area but not further? Marrying an understanding of social networks with a view
of knowledge transfer as a search process, we argue that the degree of knowledge inequality across
social boundaries depends crucially on the nature of the knowledge. Simple knowledge diffuses readily#p#分頁標題#e#
across boundaries because outsiders poorly connected to the knowledge source can compensate for
their poor access by means of local search. Complex knowledge resists diffusion even within the social
circles in which it originated. With knowledge of moderate complexity, however, insiders can achieve
diffusion by coupling high-fidelity transmission along social conduits with local search, while
interdependencies stymie outsiders who rely more on local search. Knowledge inequality across social
boundaries, then, reaches its maximum for knowledge of moderate complexity. To test this hypothesis,
we compare patent citation rates across three types of boundaries: within versus outside the firm,
geographically near to versus far from the inventor, and internal versus external to the technological
class. We find robust support for the hypothesis and discuss important implications for actors who aim to
heighten or diminish knowledge inequality.
Keywords: knowledge diffusion, complexity, social networks
Business Policy and Strategy Paper Abstracts -- 79
CAN PATENT CITATION NETWORKS BE USED TO HELP
GUIDE APRIORI ESTIMATION OF OPPORTUNITY VALUE?
Hsieh, Chihmao; Washington UThe value of an idea or opportunity is not readily revealed through standard classical or neoclassical
theories of value. This paper attempts to guide the estimation of an idea抯 value by analyzing the
knowledge components involved. First, graph theoretic analysis can help to conceptualize the
recombination of past knowledge. Yet any given set of components once combined can still be configured
in various ways; I argue that understanding the nature of the values of these configurations requires
deriving a measure of component interdependence. As extant measures of interdependence -- especially
搑elatedness?a la SIC codes -- are inappropriate, I suggest and show that an idea抯 knowledge
components are connected through graph-theoretic patterns, each of which indicates a potential source
of interdependence. Finally, under any set of components, I assume that entrepreneurs engage in
relatively costless local search to find the best configuration, and that entrepreneurs only exploit the local
optima on their landscapes. Complexity theory can then be used to help guide the estimation of idea
value. Empirical results using patent citation data from the semiconductor industry are mixed. As
expected, the interdependence-to-number of components ratio is negatively related to idea value. But
while complexity theory predicts the relationship between interdependence and value to be inverse Ushaped,
I find decreasing but always-positive marginal returns to interdependence. In general, the paper抯
main theoretical contribution is preliminary success in combining graph theory with complexity theory, and
empirical results implicate combining complexity theory with a learning framework for future research.#p#分頁標題#e#
Keywords: Graph theory, Graph theory, Graph theory
WHY MUST ALL GOOD THINGS COME TO AN END? THE
Unlike prior CEO succession and turnaround literature, we propose that the mere act of CEO succession
is not sufficient to directly affect post-bankruptcy performance. Our premise is that CEO succession does
not directly affect the performance of bankrupt firms because refocusing, ecological, and control variables
are more important predictors. We propose a model of the antecedents to post-bankruptcy performance
and find that, in addition to refocusing, organizational size and slack also directly affect post-bankruptcy
Business Policy and Strategy Paper Abstracts -- 89
performance. The findings from this study provide richer insight into our understanding of post-bankruptcy
performance and suggest a more comprehensive framework for evaluating the utility of CEO succession
in distressed firms.
Keywords: CEO sucession, turnaround, refocusing
TRANSACTION ALIGNMENT AND SURVIVAL: PERFORMANCE
IMPLICATIONS OF TRANSACTION COST ALIGNMENT
Bigelow, Lyda S.; Washington UThere are now hundreds of empirical studies that have confirmed the main predictions of transaction cost
economics regarding the alignment of transactions with governance structures. However, as Masten and
others (e.g. Masten, 1993; Boerner and Macher, 2001) have noted, there are very few empirical studies
that demonstrate the impact of this economizing alignment on performance. Some critics have noted that
in order for the theory to be of relevance to other organizational theorists ?in particular strategy
researchers- there must be evidence of the performance implications of getting the governance structure
right from a transaction cost perspective. Both empirical and theoretical hurdles have stymied research in
this area. This paper addresses the primary theoretical issues and offers a unique empirical test using an
18 year panel of the population of U.S. automobile manufacturers from 1916 to 1934. The primary finding:
governance does matter. Firms that fail to organize according to transaction cost logic have a higher risk
of mortality than firms that adhere to transaction cost reasoning. This paper offers evidence that, yes,
getting the alignment right does have profound effects on firm performance. Misalignment has a positive
effect on the likelihood of firm failure. Perhaps of even greater interest, this paper also demonstrates that
the effect of misalignment varies with firm age.
Keywords: transaction costs, survival, governance structure
PERMEABILITY TO NEW ENTRANTS: THE EFFECT OF
HIERARCHY AND COORDINATION ON KNOWLEDGE FLOWS
Anand, Jaideep; U. of Michigan; Traditional theories of the firm emphasize the public good nature of knowledge within firms and its
immobility across firms. Yet, new theoretical and empirical insights reveal that the flow of knowledge#p#分頁標題#e#
within organizations can encounter a great deal of resistance, while at the same time these flows are very
difficult to halt at the external boundaries of the firm. This research empirically examines flow of
knowledge in two contexts: one, where a new organizational unit joins an existing firm, and two, where a
new organizational unit enters a new location. The former presents an opportunity to measure the
permeability of intra-firm boundaries, while the latter permits an understanding of knowledge flows across
inter-firm boundaries. The empirical analysis controls for the endogeneity due to non-randomness in the
occurrence of these events. Knowledge flows are measured through patent citations. The results suggest
major differences between the mechanisms of intra- and inter-firm knowledge flows, and highlight the role
of hierarchy and coordination as key determinants of intra-firm knowledge flows.
Keywords: Knowledge Flows, Entry Mode, Acquisitions
Business Policy and Strategy Paper Abstracts -- 90
留學(xué)生dissertation代寫FROM RES. HETEROGENEITY TO DIFFERENTIAL PERF.:
ROLE OF RES. STRUCTURE AND DYNAMIC RES.
INTERACTIONS
This paper reviews the development and main criticisms of the resource-based view of the firm (RBV). It
attempts to expand this literature by integrating a process-based approach with RBV and focuses on the
dynamic aspects of resources to explain inter-firm performance differences over time. It relaxes the
equilibrium-based relationship between resources and performance, and attempts to present a new
picture of how resources influence performance over time, in keeping with the changing characteristics of
the context. For this, it first separates out the nature of context into structure and interactions; it then
advances propositions describing their influence in furthering resource heterogeneity and differential
performance over time. It empirically examines a phenomenon of divergence in the British life-insurance
industry to present empirical support for our propositions. A field-study based model is formulated using
stock-and-flow orientation. Phased simulations examine the impact of the nature of interactions on
stability, context, performance, etc. It shows that under certain circumstances initial resource
heterogeneity can be compounded into increasing differential performance due to context-specific
interactions such that a firm might develop competitive advantage while starting with similar resources
with respect to another firm.
Keywords: resource interactions, dynamics of resources, resource accumulation
 relationships among strategic charismatic
leadership, organizational performance, and environmental uncertainty with primary data from a sample
of 128 Chief Executive Officers (CEOs) of major U.S. corporations. Based on 770 surveys from top#p#分頁標題#e#
management team members (TMT) in these companies, objective market and accounting financial data,
and on objective measures of environmental uncertainty, we find that past financial performance is
associated with future perceptions of CEO charisma, but that perceptions of CEO charisma are not
associated with future financial performance, even when environmental uncertainty is factored in.
Keywords: charisma, CEO, leadership
Business Policy and Strategy Paper Abstracts -- 91
KNOWLEDGE OF INTERCUSTOMER RELATIONS AS A
SOURCE OF VALUE CREATION AND COMMITMENT IN
INTERMEDIATIO
Both the academic and practitioner literatures have discussed various methods firms use in the transfer of
organizational practices. The purpose of this paper is to empirically explore the various transfer methods
to ascertain any underlying mechanisms or constructs. In this regard, we surveyed participants of 122
different transfers of organizational practices in eight companies, asking their usage of 38 different
transfer methods derived from the literature and field research. Exploratory factor analysis reveals four
underlying dimensions representing implementation, sharing, persuasion, and training methods. We then
empirically explore the effect on transfer stickiness of using the four factors across the four temporal
stages of a transfer. The analysis suggests that the type of method used differentially affects the
stickiness, or difficulty, depending on the stage of the transfer.
Keywords: Knowledge Transfer, Replication, Transfer Methods
SUPERVISION CLAUSES IN TECHNOLOGY LICENSING
AGREEMENTS: THE GOVERNANCE OF KNOWLEDGE
TRANSFERS
In this paper, we point out that governance mechanisms implemented in strategic contractual agreement
are influenced by the features of the transaction (as pointed out by transaction cost economics,
Williamson [1985]), by the characteristics of the institutional frame (analyzed by New Institutional
Business Policy and Strategy Paper Abstracts -- 92
Economics; North [1990] and by strategic consideration (as pointed out by Industrial Organization; Tirole
[1988]). More specifically, we show that supervision clauses in technology licensing agreements are more
likely when the transfer of knowledge involves asset specificity and strategic hazards. Evidence is given
on the basis of an international sample of 265 licensing contracts. Data were collected through a survey
answered by 160 American, Japanese and European firms, principally in chemicals, equipment and
services industries. Our results are therefore also a contribution to the management of Intellectual
Property Rights.
Keywords: licensing, supervision, intellectual property rights
CORPORATE BOARDS AND COMPANY PERFORMANCE:
REVIEW OF RESEARCH IN LIGHT OF RECENT REFORMS
In response to recent corporate scandals, major changes have been made in the way U.S. public#p#分頁標題#e#
companies are governed. The connection between these reforms and the substantial body of research on
the relationship between the composition, structure and practices of corporate boards and firm
performance has not been explored. This paper reviews the empirical literature on boards and firm
performance since 1989, when the last major review of this topic was published (Zahra and Pearce,
1989).
Keywords: firm performance, corporate boards, governance reforms
REAL OPTIONS AS DETERMINANTS OF ENTRY THRESHOLDS
We develop a model whereby diversified entry can be understood as a strategy revolving around a firm抯
real options. Firms search industries to find good matches for their organizational capabilities. We argue
that entry is a function of expected performance relative to a firm抯 threshold for performance, and
consider that real option value is a primary determinant of firm thresholds. A contribution of the paper is
that we identify the statistical determinants of firm thresholds.
Keywords: real options, entry, thresholds
CONTRACT DESIGN CAPABILITIES AS A SOURCE OF
COMPETITIVE ADVANTAGE
While strategy and organizational scholars have studied inter-organizational relations extensively,
contracting processes per se have received relatively little attention, despite their manifest strategic
importance. This paper is an preliminary effort to delineate and dimensionalize the concept of contract
design capabilities; to the explore the potential for competitive advantage associated with those
Business Policy and Strategy Paper Abstracts -- 93
capabilities, and to draw out implications for the locus of contract design capabilities along key
dimensions of complex contracting. We emphasize in particular that building contract design capabilities
involves learning how to management the trade-offs associated including more or less contract detail in a
contract, as well as those associated with using contract templates vs. customized contracts, along
several key dimensions. We argue that the relative roles of managers and lawyers will differ significantly
along these different dimensions of the contracting process, and that contract design capabilities will
inhere in these different players accordingly.
Keywords: Capabilities, Contracting, Competitive Advantage
INTER-ORGANIZATIONAL RESPONSES TO PRICING
PARADIGM SHIFTS
We proposed and found that a shift in the health care pricing paradigm from a retrospective Medicare
payment system to prospective payment and increased managed care enrollment caused significant
changes in the structure of the Chicagoland hospital market between 1987 and 1996 and changed the
nature of inter-organizational relationships. Using Resource Dependency Theory, and Neo-Institutional
theory, we explain the use of different interorganizational strategies by various strategic groups in the#p#分頁標題#e#
market as a way to maintain legitimacy and maintain access to patients.
Keywords: Hospitals, Inter-organizational Relationships, Strategic Groups
STRATEGY FRAMES AND FIRM PERFORMANCE: THE MODERATING
ROLE OF INDUSTRY CLOCKSPEED
Existing literature on fast changing industries has focused mainly on competitive and economic predictors
of performance. Few studies have empirically examined the cognitive mechanisms managers use to cope
with these challenges. Besides, most studies have focused on the coping mechanisms employed by firms
in fast paced environments. Comparative studies exploring the differences in cognitive challenges faced
by firms in fast and slow paced industries are noticeably absent in the literature. To address this gap, we
examine the moderating effect of industry clockspeed on the relationship between strategy frames,
strategic flexibility and firm performance. We employ two key properties of strategy frames梒omplexity
and centrality. The results suggest that complexity of strategy frames promotes strategic flexibility, which
is successful in fast clockspeed industries. On the other hand, centrality of strategy frames fosters
strategic persistence, which is effective in slow clockspeed industries. In what follows, we discuss how
these results extend existing literature.
Keywords: Strategy frames, Strategic flexibility, Industry clockspeed
Business Policy and Strategy Paper Abstracts--94
NETWORK-SPECIFIC CAPABILITIES, NETWORK BARRIERS
TO KNOWLEDGE TRANSFERS, AND COMPETITIVE
ADVANTAGE
This study examines the role of network knowledge resources in influencing firm performance. More
specifically: Can a firm that uses the identical supplier network as competitors (a structurally equivalent
network) and purchases similar inputs from the same plants achieve a competitive advantage through
that network? In a sample of U.S. automotive suppliers, we find that greater knowledge sharing on the
part of the buyer results in a faster rate of learning within the supplier network. More specifically, from
1990-1996 suppliers lowered inventories by 29 percent in their manufacturing cells for Toyota compared
to only 5 percent reductions for their largest U.S. customer. Suppliers also reduced defects by 78 percent
for Toyota versus 46 percent for their largest U.S. customer, thereby achieving 50 percent fewer total
defects for Toyota. Superior quality parts from suppliers contributed to Toyota抯 9.7 percent new car
premium and 17 percent used car premium. The productivity and quality differences were found to persist
within suppliers due to 揷ontext?barriers associated with intra-plant knowledge transfers, notably (1)
network constraints, and (2) internal process rigidities. These findings empirically demonstrate that
network resources have a significant influence on firm performance and at least some firm capabilities are#p#分頁標題#e#
network specific.
Keywords: organizational learning, knowledge management, networks
IDEAS MEET ORGANIZATIONS. INTRAPRENEURSHIP AND
EVOLUTIONARY PERSPECTIVES ON FIRM GROWTH
Czernich, Christian H.; Stockholm School of Economics;New entrepreneurial ideas are often the wellspring for new corporate strategies and are as such an
important determinant of the direction of internally powered growth and diversification. Yet, prior research
on organizational exploration has argued that large organizations face considerable difficulties in
commercializing radical entrepreneurial ideas. In this paper I develop a theory for when we can expect
such entrepreneurial ventures to survive in large organizations. I argue that in order to understand the
differential survival of new ventures and thus ultimately also the determinants of the direction of corporate
growth and diversification one needs to understand the inner workings of the organizational selection
system. Departing from the notion in evolutionary and behavioural perspectives that the direction of
organizational growth is determined by resource and routine linkages it is argued that the internal
selection system of corporations is a double-layered system. It is partly operating on resource and routine
linkages, but partly also on the particular actors involved and their efforts to mobilize support for the new
venture. Furthermore, the nature of internal selection changes as a function of the current organizational
risk preferences determined by organizational performance relative to a reference point. Hypotheses
about when we would expect ventures to survive are derived based on 80 interviews with inventors,
product champions and senior R&D managers. The hypotheses are then tested on a sample of 88
ventures with the help of a Cox proportional hazards model with time dependent covariates.
Keywords: Intrapreneurship, Corporate Growth, Internal Selection
Business Policy and Strategy Paper Abstracts -- 95
MARKET POWER AND INCREASING RETURNS: FIRM
CAPABILITIES USING STOCHASTIC FRONTIER ESTIMATION
Kiousis, P. Konstantina; Ohio State U.; Using microfoundations, this paper estimates the degree of market power and increasing returns in the
US economy from 1965-95. Using Stochastic Frontier Estimation, we then examine the role of firm-level
capabilities in generating these returns. A novel feature of this study is that we test for the presence of
imperfect competition and increasing returns (estimation of markups) as well as adjust for variations in the
utilization of inputs. Using a panel of 2,078 firms spanning the time period 1965-1995, we find that large
markups are present and large markups require increasing returns, if competition eliminates profits;
(ii)firms who develop their technological capabilities are likely to enjoy competitive advantage; and#p#分頁標題#e#
(iii)firms who develop capabilities associated with growth outside their focus are less efficient.
Keywords: resource based view, productivity, market power
STRATEGIC INITIATIVES: CHANGING THE FIRM DNA

This study examines the factors that facilitate institutionalization ?the process of embedding procedural
and behavioral changes into the fabric of the organization ?during the execution of strategic initiatives in
a large, multidivisional firm. whether executives interact in the manner presumed by top management
team scholars. Specifically, it identifies four critical processes that enable firms to avoid the lavor of the
month?trap often associated with corporate initiatives. We find that these antecedent processes lay the
foundation for the successful institutionalization of a strategic initiative. Our results do not conform to the
conventional wisdom regarding programmatic change efforts. While the strategic change literature often
focuses on institutionalization as the third and final phase of an organization transformation process, we
find that the foundation of effective institutionalization occurs during processes that unfold before the
strategic initiative is rolled out to the entire organization.
Keywords: Strategy Implementation, Change, Institutionalization
COOPERATION AMONG DIRECT COMPETITORS AND THE
PATTERNS OF COMPETITION
DiGregorio, Dante; U. of New Mexico; Value creation by individuals and firms plays a central role in the evolution of populations by enabling
adaptive efficiency. Once created, value may become embedded in resources which require deployment
for value to be appropriated. Value appropriation is a two-step game, in which a firm first competes
against other firms to create and protect appropriation streams (i.e., inter-organizational value
appropriation), then managers, employees, shareholders and other stakeholders compete to capture the
value that has been retained within the firm (i.e., intra-organizational value appropriation). I argue that the
inter- and intra-organizational value appropriation processes are driven by common elements, including
not only bargaining power and isolating mechanisms but also relation-based power and opportunitybased
action. I advocate an integrative approach due to the interplay between value creation and value
appropriation processes.
Keywords: value creation, value appropriation, bargaining power
BOARDS OF DIRECTORS, CHIEF EXECUTIVE OFFICERS, AND
ACQUISITION PERFORMANCE: BEYOND AGENCY THEORY
We derive propositions concerning the impact of boards of directors and chief executive officers (CEOs)
on acquisition performance. Our arguments move beyond simplistic agency theory explanations by also
incorporating resource dependence theory. A logical next step is to examine relationships between
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directors?human capital as board members and motivation to intervene in strategic decisions, contingent
upon the capacities and motivations of CEOs in undertaking acquisitions.
Keywords: acquisitions, CEOs, Boards of directors
MERGERS AS A GROWTH STRATEGY IN LAW FIRMS: THE
IMPACT ON ATTORNEY DEPARTURES AND RECRUITMENT
Rohrer, Lisa Haueisen; Harvard U.; Law firms increasingly utilize mergers in order to pursue aggressive growth strategies. However, very little
quantitative work has examined how mergers affect critical human resource issues in professional service
firms. Using a sample of 93 law firm mergers that occurred in the mid 1990s, I examine how these
mergers affect the quantity and quality of lawyers who are hired into and depart from the merging firms.
The results suggest that mergers lead to significantly higher attorney departure rates. Furthermore, while
law firms that lose people in mergers actively attempt to replace them, the quality of these new hires
appears to decline after the mergers. I discuss the implications of these results for both managers as well
as theory and research on professional service firm mergers.
Keywords: Mergers, Strategic Human Resources, Professional Service Firms
DETERMINANTS OF RESOURCE ALLOCATION EFFICINECY
WITHIN MULTIDIVISIONAL FIRMS
In this paper, I propose a conceptual framework that specifies the conditions that drive resource allocation
efficiency within multidivisional firms. The frameworks indicate that resource allocation efficiency depends
on the headquarters?quality of the information regarding investment alternatives. Divisional managers?
incentives and firm information processing capabilities impact the quality of information, and in turn the
efficiency of resource allocation.
Keywords: diversification, divisional executives incentives, Resource allocation
ORGANIZATIONAL LEARNING AND MUTLI-UNIT OWNERSHIP
IN FRANCHISING
In this paper, I study the effects of multi-unit franchisee capabilities on store level performance.
Specifically, I propose that individual franchised stores gain access to the knowledge and routines from
other peer stores owned by the same franchisees and enjoy subsequent performance benefits. I also
argue that as multi-unit franchisees own more stores, individual franchised stores benefit more from the
expertise of their franchisees. It is those stores with poorer prior performance that tend to benefit more
from the multi-unit ownership. I develop these ideas around organizational learning and multi-unit
ownership and test the hypotheses using longitudinal data from over 2,000 stores within one of the
biggest U.S. restaurant chains from 1991 to 1997.
Keywords: Multi-Unit Ownership, Franchising, Organizational Learning
Business Policy and Strategy Paper Abstracts -- 98